Household items

Apparel

Furthermore, the U.S. government has implemented a new 10% tariff on Chinese products, effective March 4, 2025. By April 11, the cumulative tariffs on Chinese goods had climbed to 145%.

In addition, the U.S. Customs and Border Protection (CBP) has tightened reporting requirements for shipments, making customs clearance more rigorous. Importers are now required to declare the actual manufacturer's price, utilize precise HTS codes, and supply detailed country-of-origin data. These adjustments heighten costs, delays, and compliance risks for businesses that depend on dropshipping and direct-from-China fulfillment, compelling sellers to devise new tactics to safeguard profit margins and manage trade disruptions.

De Minimis Is Ending

The U.S. government has confirmed plans to eliminate the de minimis exemption for all countries once customs systems are equipped to support full enforcement. For now, the most immediate changes apply to shipments from China and Hong Kong:

May 2, 2025: De minimis ends for all goods from China and Hong Kong—shipments of any value will require formal customs entry and duties. Postal shipments will be subject to a 120% tariff or $100 per item, depending on the valuation method selected by the carrier.

June 1, 2025: The flat-rate postal tariff increases to $150 per item (up from the previous $100 rate)

These updates phase out a long-standing cost-saving tool for DTC brands shipping low-value parcels and are expected to significantly increase landed costs for many e-commerce businesses.

Using US Warehouses After the De Minimis Exemption Ends

To combat rising tariffs and customs restrictions, eCommerce businesses need a cost-effective, stable, and scalable logistics strategy. One of the most effective solutions is combining sea freight (or air freight if the goods required in short time) with U.S.-based warehouse fulfillment.

How This Strategy Works

Instead of shipping products individually from China, businesses can import bulk inventory via sea freight or air freight to U.S. warehouses. Once stored in strategically located fulfillment centers, orders can be shipped domestically within 2-3 days, improving delivery speed, customer satisfaction, and conversion rates.

Key Benefits of This Approach

About 30% Cost Reduction Per Order

Bulk shipping via sea freight drastically lowers per-unit order costs compared to direct shipping from China.

Once goods are imported and stored in a U.S. warehouse, sellers avoid repeated tariff payments on each individual order.

Businesses benefit from cheaper last-mile shipping rates when fulfilling orders from a U.S. warehouse instead of shipping from overseas.

60%+ Increase in Fulfillment Speed

Direct shipping from China can take 7–15 days or longer, causing delays that frustrate customers.

With inventory stored in the U.S., orders can be delivered within 2–3 days, meeting customer expectations for fast shipping.

Faster delivery speeds lead to higher conversion rates, reduced cart abandonment, and better customer retention.

Avoid Customs Delays & Stricter Tariff Enforcement

With the removal of T86 de minimis clearance, low-value imports now face stricter customs inspections.

Bulk shipping inventory in advance to a U.S. warehouse eliminates the risk of clearance delays or penalties for undervaluing shipments.

Greater Pricing Stability & Scalability

Businesses can lock in predictable costs for bulk imports instead of fluctuating international shipping fees.

Scaling operations is easier with U.S. warehouses handling high-volume orders, rather than relying on inconsistent cross-border shipping.

How to Choose a U.S. Warehouse Provider

Selecting the right U.S. warehouse provider is a crucial decision that impacts your fulfillment efficiency and business scalability. Here are the three key factors to consider.

Response Time

A provider’s response time is a strong indicator of operational efficiency and service reliability. A good warehouse partner should:

Respond quickly to inquiries, pricing requests, and service setup to avoid delays in onboarding.

Provide clear timelines for inventory check-in, order fulfillment, and issue resolution.

Offer dedicated customer support that doesn’t leave sellers waiting for days to get started.

A slow response can delay inventory placement, fulfillment setup, and ultimately affect sales and customer satisfaction. Choose a provider that prioritizes fast onboarding and efficient communication.

Information & Operational Control

Sellers need real-time visibility and full control over their inventory, shipments, and fulfillment operations. Key aspects to look for include:

A centralized system for tracking inventory levels, order status, and warehouse operations.

The ability to integrate with multiple sales channels and sync inventory data across platforms.

Transparent reporting on fulfillment performance to help optimize stock levels and shipping strategies.

Without access to timely information, sellers risk overstocking, understocking, or unexpected fulfillment delays.

Cost Optimization

Warehousing and fulfillment costs can quickly add up if not managed properly. To keep expenses under control, consider:

A clear, structured pricing model with upfront costs and no hidden fees.

Strategic partnerships that enable cost-effective operations and bulk shipping discounts.

Well-positioned warehouse locations to minimize last-mile delivery expenses.

Scalability options to adjust storage and fulfillment capacity based on demand fluctuations.

Choosing the right warehouse provider isn’t just about storage space it’s about partnering with a fulfillment solution that enhances efficiency, reduces costs, and supports business growth.

Dream Fulfillment Center’s U.S. Fulfillment Network Strategy

Dream Fulfillment’s U.S. fulfillment network is designed to minimize costs, maximize speed, and provide sellers with full control over their logistics operations. Here’s how our approach sets us apart:

48% More Cost-Effective Than Competitors

Fulfillment costs can significantly impact profitability, especially with rising tariffs and shipping expenses. Dream Fulfillment Center’s U.S. fulfillment network reduces costs by up to 48% compared to other providers. By leveraging bulk shipping rates, we lower per-unit costs, making large-scale fulfillment more economical. Our transparent pricing model ensures sellers know exactly what they’re paying for, with no hidden fees. Additionally, by eliminating unnecessary third-party markups, businesses maximize margins and only pay for the services they truly need.

Faster Response & Full Control Compared to 3PL Warehouses

Unlike traditional third-party logistics (3PL) providers with outsourced services and slow response times, DreamFulfillmentCenter offers direct control over warehouse operations, ensuring faster processing and real-time inventory updates. Our proactive issue resolution provides instant support, eliminating delays that disrupt fulfillment. With end-to-end visibility, businesses can track orders, monitor inventory, and oversee fulfillment with complete transparency. Dream Fulfillment Center isn’t just a provider, it’s a true logistics partner that integrates seamlessly with your operations for greater efficiency and scalability.

Smart Inventory Storage for Faster & Cheaper Fulfillment

Dream Fulfillment Center uses AI-powered analytics to store inventory strategically across multiple warehouses based on sales trends, forecasts, and demand. This optimizes fulfillment by shipping from the nearest warehouse, cutting last-mile delivery costs and improving speed. It also ensures stock availability where it’s needed most, preventing shortages and delays. With this data-driven approach, sellers reduce logistics costs while delivering orders faster, gaining a competitive edge in the U.S. market.

Conclusion

International trade policies are constantly evolving. To stay competitive, eCommerce businesses need a cost-effective, scalable, and reliable fulfillment strategy.

That’s exactly what Dream Fulfillment Center’s U.S. fulfillment network provides. With lower costs, faster processing, and full operational control, we help sellers navigate trade disruptions while optimizing logistics for long-term growth. Whether you’re a high-volume seller, a brand focused on fast delivery, or a business looking to future-proof your supply chain, our smart warehouse solutions ensure your fulfillment stays seamless and efficient.

Ready to take control of your fulfillment strategy? Contact Dream Fulfillment Center today for a customized solution that keeps your business running smoothly, no matter how trade policies shift.